FEDERALISM IN INDIA IS COMPLICATED
This commentary is based on an article titled “India’s Federalism” that appeared in The Indian Express on June 23, 2023.
Powers are split between two or more levels of government, such as the federal government and the states or provinces, in a federalism form of government. Federalism makes it possible to accommodate regional autonomy and variety within a larger political entity. An Indian federal structure with certain unitary elements is established under the constitution. Due to the fact that it combines aspects of federation and union, it is also referred to as a quasi-federal system. The Union government and the state governments are given different levels of legislative, administrative, and executive authority according to the Constitution. A Union List, a State List, and a Concurrent List, which represent the powers granted to the union government, the state governments, and the powers shared among them, are used to categorise the legislative powers. The Constitution also calls for the creation of a multilevel or multilayered federation with several systems for distributing political authority. Given that it transitioned from a unitary system under British rule to a federal system after independence, Indian federalism is exceptional in its setting. The integration of princely states, linguistic reorganisation of states, regional movements and demands for autonomy, center-state relations and conflicts, fiscal federalism and resource sharing, cooperative federalism and inter-state coordination, etc. are just a few of the problems and challenges that Indian federalism has had to deal with over time.
What types of federal systems are there?
Holding Together Federation: In this kind of federation, authority is distributed among its numerous constituent parts in order to accommodate the diversity of the whole. Powers are typically skewed in favour of the central authority here. Example: Belgium, Spain, and India.
Federation: In this type, individual states join forces to create a bigger entity. Here, states have more freedom than in a federation that holds itself together. USA, Australia, and Switzerland, for instance.
Asymmetrical Federation: This sort of federation has some of its member parts with greater authority or special status than others for historical or cultural reasons. Example: Ethiopia (Tigray), Canada (Quebec), and Russia (Chechnya).
What difficulties does Indian Federalism face?
Regionalism:
The national cohesion and unity of India have been put in jeopardy by the emergence of regional parties and movements based on linguistic, ethnic, religious, or cultural identities. More autonomy, a special status, or even independence from the Indian union have been demanded by some regions or groups. As an illustration, consider the desire for Gorkhaland in West Bengal and Bodoland in Assam.
Division of Authority:
Powers between the federal government and the states are not clearly and fairly divided. By using various tools like the President’s rule, the Governor’s function, central laws, etc., the Centre can meddle in the affairs of the states because it has greater resources and power than they do. The governments’ authority and financial flexibility to implement their own development and welfare strategies are constrained. For instance, the Supreme Court later overturned President’s rule, which had been imposed in 2016 on the basis of constitutional breakdown in Arunachal Pradesh and Uttarakhand.
Fiscal Federalism is absent:
The fiscal ties between the federal government and the states are not fair or open. The majority of taxes are collected by the centre, which then distributes them to the states in accordance with its judgement or standards. The Centre provides loans, grants-in-aid, and other transfers to the states. The states’ ability to tax and borrow is constrained. For instance, numerous states have voiced concerns about the inadequacy of compensation for revenue losses brought on by the implementation of the GST.
Unfair Unit Representation:
In comparison to their population, area, or contribution, states are not fairly represented in the Parliament or other federal institutions. States are overrepresented in some places and underrepresented in others. For instance, Sikkim has just one Lok Sabha seat compared to Uttar Pradesh’s 80. The voice and influence of various states in national decision-making and resource distribution are impacted by this centralised amending authority
The Parliament has the authority to modify the Constitution with a special majority. Except for a few issues that directly impact them, the states have no involvement or input in the amendment process. For instance, the Centre did not engage the state administration or other interested parties before deciding to repeal Article 370 and split Jammu and Kashmir into two union territories in 2019. As an illustration, Andhra Pradesh’s opposition to the establishment of Telangana from that state in 2014 resulted in demonstrations and bloodshed.
Why Does Federalism Need to Be Strengthened?
Maintaining Pluralism and Diversity:
In the face of growing homogeneity and assimilation demands from the Centre or dominant groups, federalism is required to defend and preserve the diversity and plurality of India’s society, culture, language, religion, etc.
Defending Rights and Autonomy:
In the face of growing centralization and meddling from the Centre or other external forces, federalism is required to protect and improve the autonomy and rights of the states and other sub-national units.
Enhancing the effectiveness and quality of governance
By empowering and permitting the states and other sub-national units to develop and carry out their own policies and programmes in accordance with their requirements and capabilities, federalism is necessary to enhance and assure the quality and efficiency of governance and service delivery at various levels.
Promoting Inclusive and Balanced Development:
Federalism is required to provide a fair and transparent allocation of resources and opportunities across the many levels or units of government, as well as to promote and accomplish the balanced and inclusive development and welfare of all regions and parts of India.
Fostering Cooperation and Harmony
By addressing disagreements and issues via communication and consultation rather than confrontation and coercion, federalism is necessary to promote and maintain harmony and cooperation among various levels or divisions of government.
Which Organisations Support Federalism?
The High Court:
It serves as the nation’s highest court and the custodian and interpreter of the Constitution. It has the authority to decide disagreements between the Centre and the states or between the states themselves.
Intergovernmental Council:
It is a constitutional body formed in accordance with Article 263 of the Constitution to encourage coordination and collaboration between the Centre and the States on issues of shared concern and interest. The Prime Minister, all state chief ministers, union territory chief ministers who have legislatures, and six central ministers the Prime Minister has chosen make up this group.
Financial Commission
It is a constitutional body created in accordance with Article 280 of the Constitution to provide recommendations about the division of funds between the federal government and the states. Additionally, it offers ways to strengthen state resources and assistance for struggling states.
“NITI Aayog”
The Planning Commission was replaced by it in 2015. In terms of economic and social development, it serves as a think tank and advisory organisation for the federal government and the states. By incorporating states in the creation and implementation of policy, it also promotes cooperative federalism. The chief ministers of all states and lieutenant governors of union territories serve as ex-officio members, along with the prime minister as chairperson, vice-chairperson, CEO, full-time members, part-time members, and special invitees.
What steps may India take to strengthen its federal system?
Enhancing the Devolution of Resources and Powers
Federalism can be reinforced by expanding the devolution of authority and funds to local and state governments. This can be done by modifying the constitutional lists, raising the proportion of state revenues collected at the federal level, granting states greater fiscal freedom, etc.
Increasing Participation and Representation:
Federalism can be strengthened by giving states more voice and voting rights in federal institutions like the GST Council, the Inter-State Council, the NITI Aayog, etc., as well as greater representation and participation of states in the development and implementation of national policies and programmes.
Encouragement of Competitive and Cooperative Federalism
Federalism can be reinforced through developing cooperative and competitive federalism among the states. To do this, states should be encouraged to collaborate on problems and difficulties that they share, to share best practises and innovations, to create incentives and prizes for improved performance, etc.
Resolving Regional Inequalities and Unbalances:
Federalism can be strengthened by addressing regional imbalances and inequalities by offering special assistance and support to underdeveloped and disadvantaged regions or groups, making sure that opportunities and resources are distributed fairly and appropriately among various regions or groups, setting up regional development councils or authorities, etc.
Respecting the letter and spirit of federal law:
Federalism can be strengthened by adhering to constitutional provisions and federalism-related norms, respecting federal principles and spirit in all matters, preventing arbitrary or unilateral actions or interventions by the Centre or states, resolving disputes or conflicts through negotiation or judicial mechanisms, etc.
The Drishti Mains issue
Examine the prospects and difficulties in creating federalism, as well as the effects on intergovernmental relations.
Questions from the previous year’s UPSC Civil Services Exam (PYQs)
Prelims:
Which of the following characteristics of Indian federalism is not true? (2017)
(A) The Indian judiciary is independent.
(a) The Centre and the States’ respective authority has been clearly delineated.
(c) The Rajya Sabha has granted the federating units unequal representation.
(d) The federating units reached an understanding that led to this outcome.
Ans: (d)
- The simplest way to describe local self-government is as an exercise in
Federalism (a)
(a) Decentralisation of democracy
Administration of authority
Direct democracy (d)
Ans: (b)
Mains:
It is true that federalism under the Indian Constitution trends in favour of a powerful Centre, a fact that works against the idea of strong federalism, even if the federal principle is dominant in our constitution and that ideal is one of its fundamental aspects. Discuss. (2014)